Thursday, 3 October 2013

Baker Hughes announced today the commercialization of its ClearStar™ fracturing fluid system, which improves reservoir performance and delivers superior fracturing in both conventional and unconventional reservoirs. The ClearStar fluid system provides better flowback for increased production and improved economic results compared to guar, guar-derivate, and borate systems.

The ClearStar system is a guar alternative that uses an efficient, refined cellulose derivative polymer to attain superior viscosity and achieve a low pH to reduce the potential for clay swelling that can restrict production flow. It delivers stable performance at temperatures up to 275°F (135°C).

With customizable delay times based on lateral length and pump rates, ClearStar fluids enhance sand transport through the wellbore during pumping operations to ensure proper placement within the fractures. The ClearStar system has a high molecular weight compared to other guar-alternative fracturing fluids, so it requires a smaller amount of polymer to achieve the desired viscosity. Lower polymer loading helps reduce a fracturing operation’s overall horsepower requirements and related fuel costs.

Used with the Baker Hughes EnZyme™ and HighPerm™ encapsulated breakers, ClearStar fluids minimize the risk of formation and proppant pack damage to ensure maximum flowback capacity and speed, and increase both initial and long-term hydrocarbon production.

"We are delighted to add the ClearStar system to our robust fracturing fluid portfolio," said David Gallagher, Baker Hughes Vice President of Production Enhancement. "This premium fluid can offer our customers superior flowback performance, and has been shown to significantly boost one year cumulative hydrocarbon production compared to conventional fracturing fluids."

In 32 separate treatments in Colorado’s Wattenberg field, the ClearStar fracturing fluid system produced an average 11% more cumulative oil over 350 days of production compared to wells stimulated using premium, guar-based fluids.

Tuesday, 24 September 2013

The Forward Markets Commission (FMC) is set to impose a penalty of Rs 100 crore on a cartel which has been found to be behind the surge in guarseed and guargum prices on futures exchanges to record high last year. Guargum prices had soared to over Rs 1 lakh a quintal and guarseed to over Rs 30,000 in March last year, forcing the commission, which regulates commodities markets in the country, to suspend futures in both.

An official of the FMC said that the Government will be taking action based on a report submitted to the Consumer Affairs Ministry in October last year, on the unusual price movement.

The report had found fault with at least 45 traders.

Responding to question on the report, the official, who did not wish to be identified, said: “The Government is taking action on the report. Notices have been issued and soon, Rs 100 crore penalty will be imposed on the cartel found to be behind this.” The official, however, refused to provide details of the cartel. In May last year, the FMC penalised nine commodity brokerages, including Angel Commodities, Kotak Commodities, Reliance Commodities and Karvy Comtrade, for violating rules in collecting margin money from traders punting on guar gum futures. Guar or cluster beans, a leguminous crop, is primarily grown in Rajasthan, besides Haryana, Punjab, Gujarat and Madhya Pradesh. Rajasthan accounts for over 70 per cent of the total crop in the country.

Guarseed is a raw material for producing guar gum.

Guar gum is used as a thickening agent and additive in food products such as instant soups, sauces, processed meat products, baked goods, milk and cheese products, yoghurt and ice-creams. It has industrial applications in the paper and textile sectors, ore flotation, explosives manufacture and fracturing of oil and gas formations.

Currently, guar gum is in demand for fracking of shale gas, particularly in the US that accounts for 25 per cent of the world trade. Guarseed and guar gum prices had run to record high early last year despite the FMC imposing additional margins; investors had to payat least Rs 15 lakh to take positions in guar gum.

Then, investors had justified the surge, pointing out to Government data on exports of guar gum. Initially, the data showed 70 per cent increase in guar gum exports in the first half of 2011-12 fiscal. The data wererevised later by the Government since the industry pointed out that the crop figures and export data of guar gum didn’t match. Meanwhile, prices of guarseed and guar gum which began to rise early this month on reports of dryness in the growing areas have dropped by 25 per cent on Tuesday. This follows the FMC directive to the futures exchanges to scrutinise the sudden spurtfrom August 12.

On Sunday, the FMC Chairman Ramesh Abhishek said on the sidelines of a meet in Mumbai that prices of guarseed and guar gum futures, which resumed in May this year, have begun to drop after he asked the futures exchanges to probe the accounts of their top 25 clients.

“We sought details on hedgers, buyers and sellers in guar (seed and gum) within 15 days. A big cartel seems to be funding the rise through some participants. We have asked exchanges to try and find out the source of funds from these participants. The exchange will penalise the members found guilty,” the chairman said.

Guarseed and guargum futures resumed from May 14, following the commission’s go-ahead.

Guarseed contracts, which are to be delivered in October, opened at Rs 7,730 a quintal on May 14 and dropped to Rs 4,040 on August 12 on speculation that guar production could be a record this year on bountiful monsoon rains. Guar gum contracts for the same month during the same time, dropped to Rs 11,430 a quintal from Rs 24,500.

On September 12, guarseed prices rose to Rs 7,963 and guar gum to Rs 22,380 after which the commission sought details. On Tuesday ( 24/9/2013), guaraseed contracts dropped to Rs 5,990 a quintal and guargum contracts to Rs 16,900.

The sharp fall in guar gum shipment has pulled down the growth in India's agricultural and processed food exports in the first quarter of 2013-14.

Export of guar gum, used in oil exploration dropped more than 57 per cent, which resulted in a moderate growth in overall agricultural exports during the quarter at around 6 per cent.

Data from the Agricultural and Processed Food Products Exports Development Authority (APEDA) showed that exports of Basmati rice, wheat, fresh vegetables, fruits and meat saw a sharp rise during first quarter. The country's total agricultural exports stood at more that Rs 12 lakh crore during the year 2012-13.

In the first quarter of the current year, the export value of guar gum fell to Rs 4,702 crore from Rs 11,000 crore in the year-ago period. "Due to decline in demand from oil and gas explorers, guar gum exports have declined sharply this years," a commerce ministry official said.

In April-June, 2013, India's agricultural exports from the APEDA basket has grown marginally to Rs 34,132 crore from Rs 32,061 crore in the year-ago period.

Exports of Basmati rice has increased by 67 per cent year-on-year to Rs 11, 178 crore. Realisations from wheat exports posted a 287 per cent rise year-on-year to Rs 3,953 crore during the quarter.

Monday, 2 September 2013

The day before yesterday the guar seed was reached up to the level of 7000/ 100 Kg. I regularly receive the call about the future of guar seed.

To get the answer of your query. Please look at the following updates.

Guar seed sowing is 70 % higher than last year.

The current rainfall is regular and more than average.

There is no news of crop damage due to heavy rain.

The demand of guar powder is closed up to next march

Fresh harvested crop is to be come after 2 months

None of the above condition is in the favor of price rise of guar seed . but it has become habit of newspaper and give opinion on rise of guar seed .

There is one factor which can lead to price rise, that is the going down of value the Rs. because the international trade is done on USD. Gum companies are earning more money due to high exchange rates. This is also possible that the rates are gone up just because of rupees down fall.

In international market there is no fresh order from fracking industry. It will take time up to next March and April.

So the current rates are speculative only, it is advised to keep away from the market in context to guar seed and guar gum...

Sunday, 18 August 2013

I am regularly monitoring the guar crop cultivation in India. Some people also say it as guar gum cultivation. The start of rainfall was bit late but after the arrival it is on regular track. The passing Indian month “SRAWAN" locally it is known as "SAWAN", was full with rainfall, especially in the guar cultivation area. This year the cultivation area of Guar has increased up to 60 % of last year. The rainfall is also very good. The farmers are expecting very good crop. The traders are expecting in sudden increase of the supply of the Guar Seed in grain market after arrival of fresh crop.

Guar Gum Cultivation In India - Guar Farm

But the farmers are worried about the rate of guar seed. When the cultivation was started the rate was around 9,000 to 10,000/ Qt, which was stabilized between 8,000 to 13,000 / 100 kg during last year. Now the rates of guar seeds are swinging between 4,000 to 6,000 / 100 Kg.

Healthy Guar crop

Unfortunately farmers are holding the big amount of the guar seed of last 1-2 years production in context to improvement of rates up the last peak of 30,000/100 kg. This stock can move to market at any time. If the current trend of good climates remains continue in this current growing period. There is no any expectation of price fluctuation up to 2-3 years. It is expected that the guar seed rate will vary in between 2500-3500 / 100 kg in coming 2-3 years after that the rate will be stable at level where the demand and supply will match.

If we analyse a small trend then we find that the farmers of irrigated area don’t prefer the guar crop over cotton or other crops , when the rates remains below 5000/ 100 kg. So it is expected that the farmer of irrigated area will not go for guar cultivation in coming years, in that case the supply will be under pressure. The production of guar seed will come down and the guar seed rates may stable between 4000-6000/ 100 kg in coming years but only in the condition that if there is no major production from irrigated area.

Flowering in Guar Plant- Guar Gum Cultivation

I have personally visited the guar growing belt in this weak. There is no any negative impact on the guar crop. The sowing has been completed and the plat growth is very good. The flowering has started in crop and the pod formation has also initiated. There is now nay attack of disease and any specific pest. Some minor attack of termite is also visible, which also vary from farm to farm. The rainfall will control the termite attack.

The rainfall will lead to vegetative growth. The extra vegetative growth will harmful in context to pod formation and seed formation. It is expected that the rains will continue in coming Indian month BHADRAPAD or BHADWA.

The problem of weed will arise due to this rainfall. But the problem will affect only the late shown crop or field of small guar plant. The field where the guar has covered the farm will be not affected by the weed problem.

Pod Formation in Guar Crop - Guar Gum Cultivation

The current climatic condition of high moisture, low temperature and low intensity of light will create a perfect condition of growth of pathogen in farm. The current condition is favorable for the disease outbreak and insect attack.

As per current rainfall is concerned there will be no water requirement for the crop in this cropping season, so there are no chances of crop failure in this season due to the water.

The excessive rainfall can be harmful in the water logging area or the area of heavy soil. Normally gaur is grown in sandy soil so there are no chances of loos due to the heavy rainfall, but water logging condition can lead to the root decay. The biologically activity of the farm will also stops due the excess water. The crop will also show the deficiency of Nitrogen and Phosphorus.

Guar Plant - Healthy- Guar Gum Cultivation

Over all this is good for the guar business in long term especially for the farmers of western Rajasthan. The credibility of the crop, growing area and farmers will be remaining positive in the mind of end user. The end user will not think about the substitute of product. The heavy speculation and fluctuation leads to insecurity among the stack holder of complete channel from seed producer to end user.

Thursday, 1 August 2013

A low profile guar crop suddenly highlighted in the market just because of its up roaring prices. The guar gum which was used to sold at USD 2 per kag rise up a a level of USD 20 per Kg... just 10 times. The guar crop highlighted itself in the commodity market.

This year again APEDA has issued eye catchy data, that export of guar gum last year was around 21,000 crore INR. Which was highest among all the commodities. It emerged as a largest exportable commodity.

This year the rates are going down it has reached down to a level of INR 12,000/ 100 kg.

FRACKING DEPTH AND VERTICAL SECTION

The less known crop produce is used to process the guar gum. Guar gum is further used into the oil and natural gas fracking industry. It work as a gel forming agent which prevent the water loss during the drilling and subsequent process.

The oil and natural gas service provider company regularly require the guar gum powder, but due to heavy fluctuation and speculation in price these companies are avoiding them self to give bulk order. It is clear that they require this produce regularly.

The gum powder is also used in other industries specially in the food industry, printing industry, textile industry.

Due the fluctuation in the price the regular supply chain has been disturbed . the companies are looking for a sustainable sand consistent supply chain model.

but due to heavy speculation in the market it is not possible at this time.

Guar global is trying to develop a innovative model for the consistent supply chain , We hope that all the stake holders related to guar business will get benefit from this.

Tuesday, 30 July 2013

After a long spell of bearish trend, guargum found fresh buying support and rose by Rs 310 to Rs 12,690 per quintal in future trading today. Marketmen said pick up in demand at prevailing lower levels against restricted supply mainly led the rise in guargum prices here in future markets. Fresh commitments at existing lower levels by traders, tracking firm overseas markets too helped to kept prices under green zone, they said. At the National Commodity and Derivatives Exchange, guargum for December contract rose by Rs 310, or 2.50 per cent to Rs 12,690 per quintal, with an open interest of 38 lots. Most active October month hardened by Rs.190, or 1.54 per cent to Rs 12,560 per quintal, having an open interest of 2,623 lots.

Monday, 24 June 2013

Indian Govt has issued a circular that the transaction of Guar gum in commodity market will come under commodity translation tax. There will liability of seller to pay Commodity Transaction Tax at the rate of 0.01%.

Govt has issued a notice that the non farming commodities ( processed) will come under commodity transaction tax from 1st July 2013. This circular will also includes the processed farming items like sugar and Guar gum, soya meal, mentha oil

Even the provision of this tax were made in the budget 2013 but no circular was issued. As per teh current circular the pure farming activities will be exempted from the Commodity transaction tax.

Finance Minister spoke in the budget speech that Commodity Transaction Tax of commodity market is equal to Security Transaction Tax of capital market.

There are 22 Commodity market in India but only 6 market operate on National Level . The combined transaction of these market was Rs 170,46,840 Crore . There is 80 % share of the non -agricultural commodities in this combined turn over.

Guar seed is the farming commodity so it will be exempted from this Commodity Transaction Tax.

Thursday, 20 June 2013

Director General of Commercial Intelligence and Statistics ( DGCIS) as released the data of exported commodities from India for the year 2012-2013.

Guar gum has emerged as largest commodity from India in foreign exchange earning. India has earned foreign Exchange of INR 21,287 Cr only from export of Guar Gum. which is around 25 % more than the last year ( 2011-2012). Last year Indian earned INR 16,523 Cr. This is the second year that Guar has standing on the Number one position.

The current share of Guar gum in total agricultural export is around 18 percent, which was just 7 percent in year 2010-11. The share of Basmati rice has decreased from 26 % to 16 % only.

There is also another good news for Guar business stake holder, farmers, stockist , manufacturer and exporters that the rate of guar seed and guar is improving slowly and slowly sine 5-6 days due to rise in demand.

Guar is moving toward the stability in the rates. Even at low rate there are the tight supply from the market.

Sunday, 16 June 2013

Rates of Gaur Seed and Guar gum are going down day by day. Even it was started to decrease from a peak of INR 32,000/ 100 Kg in last year, but the current concern is that the rates were stable in between INR 9000-12000/ 100 Kg . After the listing no major increase in the rate was seen. It started to going down and reached up to a level of 6000 / 100 Kg. Since last two day I am looking a very small improvement in the rate of Guar seed and Guar Gum.

If we analyse the current condition of Guar seed it is as follows.

This time the monsoon is on time with a prediction of good rainfall.

The farmers are having huge stocks,

New crop is suppose to arrive after four- five month

There is no any improvement in the forward ( future rates) trading.

Manufacturers are not getting long term contracts from the buyers

There is also arrival of the guar seed of summer crop from some other states.

Now the question is how long this downfall will continue. Following factors will decide the rate of guar seed in future.

Exploration of New Oil and Natural Gas Fields.

Increase in the rate of the Crude oil.

Stability in the middle east.

New area under Guar crop cultivation.

Actual rainfall during the Kharif season

Successful crop cycle of Guar crop with out any heavy damage.

As guar seed is grown in a particular type of Agro and Climatic belt of India and Pakistan, so there are more chances or risk of failure or success of the crop.

Even the Oil and natural Gas industry looking the stability in the rates of Guar Seed. The stability in the rates of guar seeds will help the entire Industry and all the stake holders.

This is year there is expectation of increase of guar cultivation area in the normal rainfall condition and stable rates in last 7-8 month except the last one month. The state Govts are also promoting the cultivation of Guar.

Friday, 7 June 2013

Guar ( Gum) Cultivation is the one of the hot topic to be discuss among the farmers, traders, exporters. Guar is a rainfed crop, which is being cultivated in Rajasthan ( India) and Neighboring Pakistan. In the Year 2012 the guar commodity and its derivatives seen an unexpected price rise which was ten time more than the regular price. The crop became popular throughout the world. Guar seed and Guar gum was an attraction for rest of the world.

People find a close relationship between Guar and Energy. The Guar gum powder is used as thickener agent or gelling agent in the hydraulic fracturing process to develop the oil field for the natural gas released from the shale formation.

The sudden price rise was a imbalance in between the demand and supply. The oil field service provider company deviated from the regular process of guar gum demand and started to give the bulk order to the manufacturer and stocking the guar gum powder as annual stock. Guar gum is a rain fed crop and grown in the defined area, which is easy to manipulate. The forward market worked as fuel in fire the forward contracts were going up and up. The prices in spot market also increased in the same way of forward market. The speculation and stocking activity made it more explosive. When the things were not in control govt immediately put ban on the forward trading of the Guar Gum.

Guar, Guar Gum, Gum Guar became favorite topic to discuss among the farmers. The major focus was on gaur cultivation or Guar gum cultivation or Gum Guar cultivation. There was no any depth research on Guar by the agriculture universities or research institutes.

Guar is a normal rainfed crop which is grown in the summer season. It require moisture in environment and well drainage soil for the cultivation. Normally it can be grown in the temperature range of 22-45 degree Centigrade. Mostly the crop are taken in two seasons March to May and June to October.

Normally it is grown on rainwater but if there is no rain at time it is advised to give irrigation. Normally it require 3-4 irrigation for the complete crop cycle. Please avoid the problematic water.

There are several varieties available in market but all the varieties are selection varieties only. You can choose any variety as per your requirement like vegetable purpose, standing varieties, maturity time, high yielding varieties. some famous varieties are RGC 1002, RGC1066, HG-365, RGC-936, RGC-986. These varieties are developed by the Govt Institutes. Other than the above some privates companies are also selling there seeds Normally farmers use the produce of the last crops as seeds. it require around 16-20 kg seeds per hactacre.

Normally the crop mature with in 90-120 days, it depends on different factors like variety, climatic condition, water availability. It doesn't require the Nitrogen as fertilizer, the application of phosphate is considered good for the yield.

The crop mature in the month of October November, which can be harvested after drying the crop or let the crop dry after harvesting. Bacterial Blight and Root rot are major disease which can cause loss in the crop.

In the Normal condition crop gives production around 15-18 Qt/ Hactare.

Though Gaur is a rain fed crop but with the help of advance agriculture practices. We can take good production

Guar is also used a fodder crop. The fodder of Gaur is nutritive in nature. The crop is also used as green pod production which is used as green vegetable. The crop also improves the soil condition. The crop is also used as green manure to improve the soil fertility.

There is no any severe attack of the Insect Pest on the storage guar. It can be easily stored for two three year with any insect pest management.

The gaur seeds are used for processing of Gaur Split and Guar gum. The gaur gum is used in various industries in different form. The by product of the gaur gum industries is used as cattle feed. The by product like Guar Korma and Guar Meal are Rich in the Protein and good for the cattle feed.

Saturday, 1 June 2013

After the re listing of Gaur seed and Guar Gum in the forward market, there is regular downfall in the rate of both commodities. Farmer and traders are not looking the rise in the price. The farmer were holding and arrival was very poor in the market on the exception of rise in the price after re listing of guar seed and guar gum in the forward market.

Now the arrival of Guar seed is increasing slowly and slowly in the market from farmers. Due to this arrival the rate is sharply going down. There is 16 % down fall in the price of guar seed and guar gum after re listing of guar seed and gum in forward market. On May 14 the rate of Guar seed was around INR 9,700/-/ 100 Kg It has come down up to INR 8000/- / 100 Kg up to yesterday.

Is this loos for industry or it is good for industry. The rate are moving toward the stabilization. This is very good for teh whole industry. A stable market will attract more investment. In long term the industry will get benefit form the stable rates of guar seeds.

The farmers and growers need nto worry about this downfall in the rate. The activity was suppose to be happen from October to January. But due to tight supply of guar seed from the farmer to market did not let it happen.

This is a regular circle activity of the guar business, after the production rates comes down for 3-4 months. Because farmers are having the stock now they require the money and they are converting commodity into cash, hop that this will continue up to 5-6 months.

Now the farmers need money for sowing of the Kharif Crop.

This is also the marriage season North India which will continue up to July -August. In the next month, the school and college will start from farmers will need money for the admission of the young generation. There will be more pressure of arrival of commodity in the market. After 4-5 month the New crop of Guar will come and that will saturate the market. Side by side some production will arrive from the summer crop and some new area of Guar cultivation like Guajarat, Andhrapradesh, Tamilnadu and Maharashtra.

Right now the arrival of Guar ( Guar Gum) Seed has increased up to 60,000- 65,000 bags / day in last 2-3 weeks. in the physical Mandi ( Grain Market ). It is expected that this year the area of Guar cultivation will increase 20-25 % than the last year and there will be 6-7 million bags more production than last year.

Now the Importers are ignoring the long term contract they are preferring the short term contract as per their demand. Due to this activity there is no sudden increase in the demand but in the volumatric terms the demand in stable and regular. In financial term this year ( 12-13) India has earned more foreign currency from Guar Gum export in-comparison to last year ( 11-12). It is expected that this year demand will increase in comparison to last year. This demand is very less in comparison to the arrival of commodity into the market.

This activity of arrival of commodity to the market will continue for next 7-8 Month. The normal and good monsoon will continue to pressurize the rate of guar rate toward downside. This is process of adjustment of equation between supply and demand. The rate of Guar will stabilize in this process. This is good for Industry.

Thursday, 30 May 2013

The major growing season of Guar cultivation is coming near. The farmers of Rajasthan, Haryana, Punjab and Gujarat are planning to go for guar cultivation as much as possible. It was a time when the farmers of irrigates area used to discuss about the farm input of cash crop like cotton, paddy, groundnut. Now the scenario has completely changed. the Farm input stores are full with Guar seeds and Insecticide and pesticide of Guar Crop.

Earlier the cost of cultivation for guar crop was very low because farmer used to do farming with local seeds without any chemical pest control. The good stable rate of gaur seeds has changed the whole scenario. Farmers are planning to take guar as first crop. After looking the complete picture it is expected that the area under guar cultivation will increase 15-20 % in irrigated Guar growing belt of Rajasthan, Haryana, Punjab and Gujarat. In the raifed area Guar will also replace the other legume and cereal crops.

There is also some mixed news from the other states like Maharashtra, M.P. Andhra Pradesh, Tamilnadu and Karnatka. It is expected that area under Guar cultivation will also increase in these states. Overall the total area under Guar cultivation will increase from 20-30 percent.

The meteorological predication of good monsoon will help farmer to take decision about the Guar Crop. The good Monsoon will lead to timely sowing of Gaur crop and good return to the farmers.

Even there was high rate of Guar seed during the last year but there was no any major impact on the export demand of Guar Gum powder from India. The Export of guar gum is almost same as 2012 export in quantity.

There was complete control of the stocking activity due to high rate as it was more risky to stock guar seeds at high rate.

This year there is stock of guar seed but not with the stockist, it is with the farmers. Farmers are sowing the tight supply of Guar seeds. That is leading to stable rate of Guar seed.

The Guar has changed the principle and law of Economics. At the higher rate there must be loos supply and flood of commodity in market but it is sowing tight supply. The same thing was happened in Ireland during world war, the consumption of Potato was increased at the increasing rate of Potato.

But it is big question that will the scenario of Guar will be stable in coming Year. The farmers are expecting the same and sowing the guar in this expectation but the study is showing the different picture.

The farmers were stoking the guar seed and expecting the hike in Guar seed rate after re-launching of the forward trading of guar seed and guar gum, but there is no any good news from forward market for increase of rate. It is clear that there is existing good stock of Guar seed with farmers

The area under guar cultivation will increase and that will lead to the increase in production. This produce will also flood in the market.

The good arrival of monsoon will also increase the production in the existing guar growing belts.

Whatever the price will be in the next year, it will be actual demand supply - ratio price without any artificial infecting factor and the rate will stable. The stable rate t will lead to the positive environment for the Guar business in world.

Friday, 17 May 2013

Forward Markets Commission / Govt has lifted the ban from the trading of Guar seed and Guar gum in forward market. Two major forward market, Multi Commodity Exchange of India ( MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) has started the trading from 14th May, 2010. The trader and farmers are positive about this step.They are looking that in near future the rate of Guar Seed and Guar Gum will go up.

Since one year Farmer and trader were waiting for future trading of Guar seed and Guar Gum. They were hoping that the rate will go up just because of the open trading. The future contract will be taken on higher rate.

If we compare the scenario of today and year before of the Guar seed & Guar Gum. It has completely changed. Earlier the farmer were not too much aware, they used to flood the commodity in the market and the stockist went for the stoking. The crop was a low profile crop which was mostly limited up to Rajasthan. It was very easy to play in the market.

But Now the scope of cultivation area of crop has increased Domestically as well as globally. The major are has increased in the neighboring state of Rajasthan in Punjab, Haryana and Gujarat. becouse the climatic condition are suitable for Guar cultivation, People were not taking the crop just because of the low price crop. Globally the Area under guar cultivation is coming under cultivation from Austarlia, Africa, USA and China.

New area is also increasing in the state like Andhra Pradesh, Maharshtra Utter Pradesh and Madhya Pradesh. This will also affect the supply of the guar seed in the market. The market will feel some loose supply.

But at another hand the farmer of native place of Guar from Rajsthan has become educated /aware. They have changed their way of selling the commodity. They are showing very tight supply. Now they sell the commodity in the market as per their daily requirement. This tight supply will also effect the future of commodity.

The actual scenario will be changed after five-Six Months. Just because of tight supply of Guar and Guar seed. It is hard to estimate the availability of the Guar Seed with the trader , middleman and farmer. After the five-Six month the new crop will come in the market. If the market is saturated then it will flood the market other wise it will keep going on regular track.

At the other side the Data of Export of Guar gum from India are positive. there is no any significant change in comparison to last year ( Guar gum was around 90,000/ Qt and this year 27,000 / Qt ). That is good indication. Yes there is some decline but the is just because of the stable rates. Last year initially the rate of Guar gum was 10,000/qt and it slowly and slowly it went up to 90,000 / Qt. At that time Govt banned the future trading of the Guar Seed and Guar Gum.

The Guar Gum powder manufacturer are regularly buying the Guar Gum split from the market. That also indicates the stability of the demand.

Any way removal of ban from the trading of Guar seed and Guar gum in forward market can effect the price for short term. In the Long term the demand and supply will decide the rate.

Make it clear they can be risk in stoking and manufacturing where one go for purchasing from the market/ farmer. For the cultivation point of view there is no risk. Farmer can adopt it whole the parts of plats are useful for farmer.

Tuesday, 14 May 2013

The trading unit of the guar seed and guar gum is 1 metric tonne each and price quote for the contracts is ex-warehouse Jodhpur, inclusive of sales tax/VAT. The basic delivery centre for both the contracts is Jodhpur and additional delivery centres include Bikaner, Nokha, Sri Ganganagar, Hanumangarh and Barmer in Rajasthan, Deesa in Gujarat, and Adampur and Sirsa in Haryana

Multi Commodity Exchange of India (MCX) will commence futures trading in guar seed and guar gum contracts from today (14 May 2013). The commodity markets regulator, Forward Markets Commission (FMC), has given approval for trading in guar seed and guar gum June 2013, July 2013, October 2013 and November 2013 contracts in order to facilitate price discovery and price risk management in the guar complex.

The trading unit of the guar seed and guar gum is 1 MT (metric tonne) each and price quote for the contracts is ex-warehouse Jodhpur, inclusive of sales tax/VAT. These are compulsory delivery contracts with Staggered Delivery Tender Period for the last 15 days. The physical delivery would be available in multiples of 1 MT for both guar seed and guar gum. The basic delivery centre for both the contracts is Jodhpur and additional delivery centres include Bikaner, Nokha, Sri Ganganagar, Hanumangarh and Barmer in Rajasthan, Deesa in Gujarat, and Adampur and Sirsa in Haryana.

Tick size for both guar seed and guar gum contracts is Re1 per 100 kg. The initial margin required to trade is 10% or based on SPAN, whichever is higher. As an additional risk management measure, pre-defined special margins are included in the contract. The special margin of 10%, which is over and above the initial margin, will be imposed if prices rise by more than 20%. Further, for every 10% rise in prices, the special margin charged will also increase by 10%. Additionally, if prices increase by more than 50% in the June and July expiry contracts, a special margin of 70% will be imposed.

The guar seed and guar gum open position limits for a member collectively for all clients is 12,000 MT or 15% of the market wide open position, whichever is higher, and for individual clients it is 2,400 MT. The near month limits shall be applicable for 20 days prior to expiry of the contract. The near month limit for a member collectively for all clients is 4,000 MT or 15% of the market wide open position, whichever is higher and for individual clients it is 800 MT. The position limits shall be applicable for all contracts traded on all exchanges.

The guar gum open position limits for a member collectively for all clients is 3,000 MT or 15% of the market wide open position, whichever is higher, and for individual clients it is 1,000 MT. The near month limits shall be applicable for 20 days prior to expiry of the contract. The near month limit for a member collectively for all clients is 600 MT or 15% of the market wide open position, whichever is higher, and for individual clients it is 200 MT. The position limits shall be applicable for all contracts traded on all exchanges.

Tuesday, 2 April 2013

We are leading knowledge and technology provider for the guar or guar seed or guar gum in the world. The demand of the guar , guar seed and guar gum is increasing day by day.

The major consumption is from Oil and natural gass industry. The industry consume huge amount of the guar gum as a carrier for sending the sand and other material to the shale rock after the hydraulic fracturing.

Hydraulic Fracturing is a process of drill the oil well horizontally. The shale rocks are fractured by the hydraulic pressure. To make the rock at the fractured position it needs sand. So that the hydrocarbon can move freely and can be easily come out.

USA is using this technology and today USA is self sufficient in the natural gas. Now USA is not importing the Natural gas from other countries.

Now the same technology is being followed by China, Australia and other countries so that they can use this huge stock of the natural gas. After the drilling, one natural gas well can work for more the 50-60 years.

People are thinking to opt the alternate of guar but the guar is natural polymer so it doesn’t not create any problem for the environment. So the gaur is the first preference of this

industry.

Guar gum is also used in the industry like food processing. Guar gum is used as natural food additive for thickening the food item. The guar gum doesn’t change the taste and color of the food items. It is also mixed in the ice-cream to prevent it crystallization at deep temperature.

It is also used in other industries like , printing, paper industry, cattle feed industry, paint industry, and textile industries due to its unique properties.

The crop can be grown easily in the low water availability, it require long day hour and bit humid climate. The crop is grown successfully in India since centuries.

If you have any question or query related to gaur gum please ask at this platform. We will happy to answer these queries.

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Guar Gum seed Cultivation

India is theleadingproducer of guar and guar gum in the world. It share around 80 % production of world, rest ofmajorproduction comes fromPakistan. In India Rajasthan is leading producer of the guar seed and guar gum. It contributes around 70 % production of India. Haryana , Gujarat and Punjab are other Guar producing states in India.

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Guar Gum Cultivation Consultancy

Guar is emerging and highly preferred agriculture commodity. The demand from the oil and natural gas industry is increasing day by day. The powder of guar seed known as guar gum is used in franking process.India is the major producer of the Guar Gum in the world. The climatic conditions of other countries also favour the Guar production. It can be cultivated in the low water availability regions.

We provide complete solution for the guar cultivation. We provide dedicated technical consultancy for the Guar Cultivation. We will assist you in selection of the Land suitable for Guar Cultivation, selection of right type of variety, Farm management of the guar field, post harvest management of the guar crop, storage and ware housing.

Our expert will help your toward your maximum satisfaction for the guar cultivation point of view..